Laws And Regulations Around Ecommerce

With our highly digitized world today, starting an online store is now a convenient and cost-efficient way to start a business (Check out Once you’ve assessed your concept of an online store and have a strategy for sourcing products, it would be a wise idea to look into the regulations and restrictions that might affect you and your ecommerce business.  

Having knowledge and understanding of these ecommerce laws, regulations and restrictions before you begin to sell online will actually aid you to strategize well as well as to save you energy, time and of course money.

What are the possible concerns and hurdles that you might encounter?

Several of these concerns are simply a portion of the expense of selling products online, however a number of them may appear as a surprise. Which is why being acquainted or familiar with them early on is the answer to be able to work around through and around them.


In terms of taxes, each country and state has diverse standards and expectations. Therefore, conducting a research to fathom the market you are targeting is essential. For example, if your demographic is in the U.S., show product costs exclusive of tax. On the other hand, if Australia is your target market, you’ll want to your prices to include tax since shoppers from Australia are used to seeing prices that include of everything, such as tax and shipping costs.

Payment Options

PayPal, Stripe, and SecureNet, these are a few online payment options for online businesses, and the availability of payment gateways are plenty. Don’t feel constrained by the truth that many of these options will have restrictions on particular products that you plan to sell or services that you might want to offer. When assessing gateways for payment, make certain to enquire if there are limitations or restrictions around certain or selected products. Moreover, ask if whether they are hosted or non-hosted, if their services include anti-fraud features, or if there are setup fees, monthly fees, transaction fees, and termination fees.

Trademarks, Copyrights and Patents

There seem to be several common misunderstandings regarding the definition of these terms along with the known legalities as well as laws around them.

  • Trademark: any mark, whether a word, a phrase, a design, a symbol, or a logo, that labels and distinguishes the source of the products of one party from those of others.
  • Patent: a property right that is time-limited and is connected to an invention. A patent is given by the U.S. Patent and Trademark Office for the invention to be disclosed or released to the public.
  • Copyright: safeguards works of authorship, like art, music, and novels.

It isn’t necessary to apply for this but it will depend on the products you decide to sell. However, you ought to at least verify and make certain that you’re not breaching or infringing on the trademarks and patents of others with your business or products. For example, if you decide to sell clothing with famous characters on them, you might get into trouble for copyright infringement. Ensure to look into the correct organization or company for patent, copyright, and trademark to help you get going on the right track.

Other regulations and laws you should look into:

  • Shipping restrictions
  • Business insurance
  • Licenses and permits
  • PCI compliance

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